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China's Inspur ends talks to buy Qimonda

By Wang Xing (chinadaily.com.cn)
Updated: 2009-03-17 11:45

Chinese server and software vender Inspur International has ended acquisition negotiations with Qimonda AG, leaving the German memory chip maker at the edge of insolvency.

Bloomberg News said Inspur has ended talks to buy a stake in Qimonda, citing Liu Xueheng, a company spokesman. The report said the talks ended after the Munich-based company's insolvency filing.

The Financial Times reported earlier that Inspur and the provincial government of Shandong have been seeking to buy a 50 percent stake in Qinmonda, which was forced into insolvency at the start of the year as the recession resulted in a global oversupply of memory chips.

Although several investors have shown interest in the company, none made a binding offer. The company may start its insolvency proceedings on April 1, according to the Bloomberg report.